WASHINGTON (MarketWatch) — U.S. manufacturers boosted production in October to the highest level in 10 years and wracked up a big increase in new orders, a survey of executives found.

The Institute for Supply Management said Monday its manufacturing index jumped to 59% from 56.6% in the prior month. Readings over 50% indicate more companies are expanding instead of shrinking.

Economists surveyed by MarketWatch has expected the index to be little changed at 56.5%.

The index is compiled from a survey of executives who order raw materials and other supplies for their companies. The gauge tends to rise or fall in tandem with the health of the economy.

An index that tracks production edged up by 0.2 points to 64.8%, marking the highest level since May 2004. Manufacturers have been one of the stellar performers in the economy over the past year, benefiting by surging sales of autos, airplanes and other big-ticket items.

Nor do manufacturers show any sign of letting up. The ISM’s new-orders index climbed 5.8 point to 65.8%, trailing only a 66.7% reading in August as the highest level since 2009.

“Another strong month in terms of business growth,” said an executive at an electronics company. “We continue to see strong demand across multiple sectors,” said an executive at a firm that makes transportation equipment.

One concern: exports softened. The export index fell 2 points to 51.5%, the lowest level in more than a year. Slowing economies in Europe and Asia and a stronger dollar could further dampen demand for U.S.-made goods overseas and take a bit of shine off U.S. manufacturers.

In U.S. markets, stock investors appeared to look past the ISM report. The Dow Jones industrial average fell modestly in recent action. Treasury prices fell slightly.

In October, 16 of the 18 U.S. manufacturing industries surveyed by ISM reported growth.

The only one to report contraction: petroleum and coal products. Oil prices have fallen sharply over the past few months and the coal industry is facing increased regulation, likely accounting for the drop in production.

That’s good news for other industries, however. “Fuel costs and other positive signals appear to be creating demand above normal,” said an executive at food producer.

In a separate report, the research firm Markit said its final U.S. manufacturing index for October fell to 55.9 from 57.9 in September. New orders fell to the lowest level since January, but the Markit index is much younger than the ISM survey and it does not have a long track record.

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